Despite broad stability in global zinc premiums this week, and a sharp drop in the metal's three-month price on the London Metal Exchange, an opening of the import arbitrage window for material delivered into China sparked expectations for improved demand in the region.
Zinc markets in the United States and Europe were also generally stagnant this week, while a steady recovery in the US economy fueled hopes of improved lead demand heading into the fourth quarter.
Zinc cargoes head to China amid improving demand projectionsCheap money could see US lead, zinc consumption improvePrice weakness hampers European marketOpening of arbitrage window sends spot zinc into China's domestic market
An occasional opening of the import arbitrage window for refined zinc has brought thousands of tonnes of spot cargoes into China's domestic market, and demand is expected to recover in the coming months.
Fastmarkets' assessment of the
zinc SHG, min 99.995%, ingot premium, cif Shanghai was at $70-80 per tonne on Tuesday September 8, unchanged since June 16.